ISX Charts, page-241

The latest weekly run rate figure of GPTV processed is $542mil when annualised.

They have stated they will process $880mil of cintracted GPTV this CY. That is where that figure is coming from. I believe you will find that as the year progresses that figure will become irrelevant.

The current metrics to track are the forward looking run rate figures. The rapid nature of the growth is such that it matters more what they are processing this week/month going forward than what they did the previous week/month.

They will be processing well and truly above $880mil GPTV on a weekly run rate annualised soon. I would say before the end of the current quarter. That number will become meaningless in a good way.

Some merchants have contracted to minimum GPTV figures (25% of their historic annual GPTV), some have not.

The idea of contracting to a certain minimum is that ISX are then willing to provide a better MSF rate to the merchant. IE the more you promise to direct through our network the cheaper rate we will offer you. The benefit to ISX is they can then have the certainty of minimum level of processing from that merchant. ISX are willing to provide a better rate the more you process with them - economies of scale sort of thing.

As for why merchants aren't sending 100% of their processing to ISX - well they are a new provider so a merchant will take time to build trust and confidence in the ISX infrastructure and will ramp up over time. A merchant would likely always have at least two acquirers - that way they have a backup if their primary acquirer goes offline unexpectedly.

I think the recent figures show that of the currently onboarded merchants, it would appear at least some are already directing more than 25% of their traffic through the ISX network. This is really an area of huge upside that we were not really aware of until the Kohler interview.

It is also clear that ISX are acheiving an MSF significantly higher than 130bps with most of the processing traffic to date.